1. News
November 6, 2020

Luxury retailer Farfetch secures $1.1bn investment from Alibaba and Richemont

Luxury fashion retailer Farfetch has entered into a strategic partnership with multinational technology company Alibaba Group and luxury goods holding company Richemont.

Luxury fashion retailer Farfetch has entered into a strategic partnership with multinational technology company Alibaba Group and luxury goods holding company Richemont.

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Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
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As part of this partnership, Alibaba and Richemont will invest $300m each in Farfetch through private convertible notes.

Additionally, the two companies will invest $250m each to acquire a 25% stake in the joint venture, which involves Farfetch’s China marketplace operations.

Alibaba Group chairman and CEO Daniel Zhang said: “This highly complementary partnership brings together some of the world’s leading luxury retail and technology platforms, representing another milestone in Alibaba’s strategy to meet the rapidly growing demand for luxury products in China.

“The Chinese luxury market – which is expected to account for half of global luxury sales by 2025 – consists of hundreds of millions of young, digitally‐native consumers.

“By partnering with Farfetch and expanding our existing relationship with Richemont, we will accelerate the digitisation of the global luxury retail industry and transform the luxury shopping experience for consumers.”

Following the deal, Farfetch will be selling its products to Alibaba’s 757 million consumers.

Meanwhile, Alibaba is also planning to launch Farfetch shopping channels on its e-commerce sites Tmall Luxury Pavilion and Luxury Soho.

The investments, as well as the establishment of the joint venture, are subject to the satisfaction of closing conditions and should conclude in the first half of next year.

In a separate development, Artemis acquires Farfetch’s Class A ordinary shares for $50m to increase its existing investment.

Last month, Alibaba Group acquired a controlling stake in Chinese supermarket and hypermarket operator Sun Art Retail Group.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.